SACRIFICES NECESSARY

Hawera Star, Volume L, 13 February 1931, Page 5

SACRIFICES NECESSARY

BRIDGING PRESENT CRISIS MR. SNOWDEN STARTLES HOUSE CENSURE MOTION DEFEATED. DUtNDoN, feu. it. .me vote pi censure on tne rvmasn niuwur government tor its continuous to tne puciic expenditure was mo v eel in tile txous© or Commons, t>y oir L. Yv ortmngton-jvvans on oemui ox trie Conservatives. ,=>n- iu. yy ortnington-itvans said that tne country iia<j. aireauy oeen committed on various renex works to an expenditure oi £150,000,000 and the Liberals Yvere demanding more, while in jiauuling national insurance tiie Government rvas borrowing money to relieve current expenditure. One ot tiie Treasury's principal officers Had declared that the wiiole stability of the -oritish financial system was endangered, and Continental financiers were withdrawing balances anti gold from London. The Government was loading the country to the brink of financial disaster by the means YvJiiuh had tvrecked Australia’s finance. He did not believe the present Government could restore confidence either at home or abroad. The House ought to act as a council of State and pass his motion. Mr. Philip Snowden said it tvas no

- secret that there would be a heavy de--4L licit at the end of the financial year. 'n No Budget would or could stand the unexpected strain caused in past years by the increase in unemployment, Expenditure had increased, and revenue liad declined. Furthermore, productive capacity had fallen off 20 per cent. •‘When the history of the way in which the war debt and the debt to Washington were incurred and the recklessness, extravagance and unnecessary commitments come to be known 1 am afraid posterity will curse those responsible,” continued Mr. Snowden. ••Despite the world depression Britain has suffered less than any other great industrial community. Wo are the world’s financial centre and other nations are watching us. Any wellgrounded' fear that Britain’s budgetary equilibrium is unsound might have disastrous consequences. Therefore we must maintain our financial reputation, and we can do that-

‘ ‘FUNDAMENTALLY SOUND. ’ ’ “Our position is fundamentally sounder Ilian that oi any other country in the world. All that is necessary is an effort to get over the present crisis. That can bo done. It ivill involve temporary sacrifices from everyone, and those best able to bear them will have to make the largest sacrifices, to which the Cabinet is prepared to make a substantial contribution. “This is a crisis which no one party can solve. The country and the House must realise the gravity of the position, and instead of party bickering) must unite in a common eliort to take effective measures to overcome the temporary difficulties and restore our former prosperity.”

.Sir Donald: Mae Lean moved a Liberal amendment demanding that a committee should be set up to recommend practical immediate economies. He \ pointed out that the country had to >nice the fact that even in the most favourable conditions there would be chronic unemployment of at least 1,2.50,000 for seven to ten years. Ways must be found for distributing the national cost of relief in the shape of wages. Dealing with the Liberal amendment, Mr. Snowden emphasised that only the smallest economies could be hoped for in the cost of administration. It was onlv on policy that any large saving could be made, and th© House must face that fact. He added: “Having pointed out the difficulty I say with all the seriousness L can cjpmmand that drastic- and disagreeable measures will have to he taken if Budget equilibrium recovery is to be made.” Expenditure which might Ije easy and tolerable in prosperous times became impossible in a state of grave industrial depression. Schemes involving heavy expenditure, however desirable, would have to wait until prosperity returned. This was necessary in order to maintain the present standard of life.

GRAVITY OF THIS SITUATION lius was a crisis wliicli up one ioiesaw put, tuc country and tile no use. ox Commons must realise the gravity 01 tiie situation and unite in an ettort, to overcome tne temporary difficulties ana restore the lormer prosperity. Air. Snowden added inat under the present conditions any increased taxation which, tell on industry would be tiie. last straw. .vlr. J. W. Brown (Labour) said Air. Snowden’s speecn was one or the most revolutionary heard m the'present Parliament. it meant that Mr. Snowden so highly regarded the City of London and tiie interests oi the banker and Uie money-lender that he was prepared to go back on the whole ot Ins own political career. It meant the surrender of the wnole of the .Labour plitoT. yophy at the bidding ot financial interests. The Labour Party had become the handmaid ot capitalism, said Mr. Brown. It was monstrous that a Socialist Chancellor should make such, a speech. The Government had no unemployment policy and was staggering from crisis to crisis. It appeared neither to have the guts to govern nor the grace to get out. . . Air. R. N. .Angell (Labour) said instead of harping on c-neese-paring economies there should be a cost of living index figure applied to,bond holders. Sir R. S. Horne (Conservative) thanked Mr. Snowden for one of the gravest warnings ever uttered from the Treasury bench. It would brace the country to a new view of its responsibilities and duties. But despite the grave warning Air. Snowden had allowed the introduction of a series of Bills all involving large expenditure such as the School Age Bill and the Land Bills. The Government had nad every chance and opportunity, but had im'providently spent the nation’s sustenance and depleted the country’s resources. Mr. W. Graham, President ot the I Board of Trade, replying, said whatever I Government had been in office would| have been faced with a .similar crisis. The enormous growth of unemployment was due mainly to the fall in commodity prices. He saw little sign that bottom had, yet been touched. There was no need for pessimism and despair, but sustained, enlightened, constructive optimism, realising the country could survive and build up a far greater appeal to world trade than ever before. The Conservatie motion was defeated by 310 votes to 233. The Liberal amendment was challenged only by the Left Wing Labourites and was carried by 468 votes to 21. Mr. Snowden’s speech is generally rewarded as one of the most remarkable / and most important Parliamentary utterances for a long time. Labourites are alarmed at its implications, and

some believe they see in them the death knell of the Government because Mr Snowden definitely rejected all new expenditure and contemplated economies at the expense of the unemployed. The reference to temporary sacrifices for all is regarded as an allusion to wage reductions as well as to curtailment of State activities of a beneficient. kind. . The “Dai'iy Telegraph’s’- political correspondent asserts that Cabinet has already decided on a 10 per cent, reduction in its own salaries. The saving thus effected would, of course, merely be a drop in the ocean, but it is intended as a practical gesture It is hoped the example will be widely followed. He adds that some members of the House may follow the example. Also cuts in the Civil Service are probable. , ~ _ The writer 6<xys that the Oonsei vatives considered Mr. Snowden displayed e our aye in speaking so plainly, it is suggested that the Government _in sanctioning the Chancellor’s warning intended to check extravagant demands from its own party rather than anythin2 else. . , Tho “Daily Herald” says the nation is prepared to face a crisis, hut. tlioio must lie equality of sacrifice “The Times” says it is a little late to sound the foghorn when the flhip is already on the rocks.